Form 4: Flowserve Director Cheryl H. Johnson Acquires Phantom Stock

Director Cheryl H. Johnson acquired 549 shares of phantom stock in Flowserve Corp on February 21, 2025, as part of deferred compensation.

Summary

• On February 21, 2025, Cheryl H. Johnson, a director of Flowserve Corp, acquired 549 shares of phantom stock.
• The phantom stock was acquired as part of director compensation deferred in the form of common stock.
• Each share of phantom stock is equivalent to one share of common stock.
• The price of the derivative security was $54.99.
• These shares become payable in the form of common stock upon termination of service as a board member.
• Following the transaction, Johnson beneficially owns 6,175 shares of phantom stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally to positively as it aligns director interests with shareholder value. The sentiment is slightly positive due to the alignment of interests.

Positives

• The acquisition of phantom stock aligns the director's interests with the long-term performance of the company.
• Deferred compensation plans can be tax-efficient for both the company and the director.

Future Outlook

The phantom stock will be converted to common stock upon the director's termination of service.

Industry Context

Director compensation in the form of stock or phantom stock is a common practice to align management's interests with shareholders.

Comparison to Industry Standards

• Many companies, such as General Electric and Siemens, use deferred compensation plans that include stock options or phantom stock for their executives and directors.
• The specific terms of these plans, such as vesting schedules and conversion rates, vary widely based on company size, industry, and individual performance.

Stakeholder Impact

• The acquisition of phantom stock has a minimal direct impact on shareholders, employees, customers, suppliers, or creditors.
• It reinforces the director's commitment to the company's long-term success.

Key Dates

Keywords

Flowserve, phantom stock, director compensation, deferred compensation, Form 4, FLS, beneficial ownership, Cheryl H. Johnson